The present disclosure relates generally to a system and method for calculating tax impacts associated with mortgage products and, in particular, to such a system and method that provides mortgage consumers with an online tool to determine available tax impacts associated with an inflation indexed mortgage product.
Typical online tools, also known as mortgage calculators, allow a mortgage consumer to determine the monthly payments a mortgage consumer will need to make for the purchase of a house or refinancing of an existing loan. These online calculators determine the monthly payment based on various factors including the purchase price of the property, the mortgage consumer's intended down payment, the interest rate applicable to the purchase and the term or type of mortgage being considered (e.g., ARM, 30 year fixed).
The mortgage tools also typically show the amount of interest associated with each payment being made by the borrower. This amount is typically also reflective of the mortgage interest tax impact to which the borrower is entitled. However, this may not always be the case, especially where the user has a mortgage loan in which the tax impact may be other than the fixed rate mortgage interest that is paid.